| Real Estate Investors need real buyers to succeed. No | | | | estate agents would not have knowledge of banks |
| one needs to waste time taking part in a daisy chain. | | | | distressed assets being packaged in bulk. |
| Daisy Chains in usually refer to a group of "want to be | | | | The thing is, there is a protocol that needs to be |
| " investors who actually don't have any relationship | | | | followed in the Bulk REO business. This needs to be |
| with a seller at all. They usually have heard of | | | | adhered to at all costs. If you have no idea what the |
| someone who knows someone with a bulk reo tape. | | | | rules are regarding investing in REO, you will just be |
| These people will usually say they are "one away" | | | | wasting your time. As much as possible, it is |
| from the buyers representative. | | | | recommended that you find your own source of |
| In fact, they are now just part of a daisy chain | | | | distress assets. This is easy if you know how. It literally |
| themselves. They are hoping to get part of the action. | | | | pays you to get to know the correct people in the |
| They then in turn offer anyone who knows anyone | | | | banks yourself before you begin. . |
| with money a part of the fee if they bring them a | | | | Bulk REO assets are mainly handled by someone |
| buyer. | | | | called the asset manager or someone who deals with |
| The also tend to inflate the prices as they try to | | | | "loan sales". These people in the bank will usually |
| secure themselves profit. People who are new to the | | | | deliver between one to one hundred million of property |
| business often fall victim to a daisy chain. Investors | | | | at fifty to eight percent lower than the real value in an |
| who do not do their homework getting their own list of | | | | asset pool. |
| assets from banks and instead try to broker other | | | | Bulk REO pools are pretty elusive because they are |
| investors deals are going to fail. It will payoff greatly to | | | | usually bought by investors before anyone outside the |
| those real estate investors who are interested in | | | | network is able to see the list. Investors need to be |
| earning the huge profits to do their "homework" and | | | | able to buy property very quickly. This is due to the |
| make the calls to banks themselves to find their own | | | | fierce competition involved in transactions like this. |
| tape of distressed assets. | | | | If you don't know how the process works, you will |
| In order to avoid Daisy Chains and get caught in | | | | probably not be able to get your foot in the door. The |
| something less than legitimate, stay away from | | | | first step is for the investor to become identified as |
| anything that sounds too good to be true. | | | | soon as possible through an LOI which is another |
| For example internet advertisements found on | | | | name for Letter of Intent. The seller needs to know |
| Craigslist which claim to have a bulk reo package of 5 | | | | exactly who is interested and who they are going to |
| Trillion Dollars. This is just plain false. Package prices | | | | be dealing with. In addition, there is a new internal bank |
| which are readily posted online are usually bogus. | | | | rule where a certain protocol needs to be undergone in |
| Also be aware that real estate agents who say that | | | | order to get a look at the REO property list. I highly |
| they have bulk REO product available for so-and-so | | | | recommend that you get some basic education before |
| price are usually not legitimate either. The broker | | | | diving into bulk reo investing unknowingly. |
| himself probably is part of a daisy chain. Most real | | | | |